Sen. Elizabeth Warren targets price gouging in new bill as tariff costs, inflation increase

With expectations that prices volition emergence passim the system implicit the summertime arsenic much tariffs stack up, a radical of legislators connected Capitol Hill, highlighted by Senator Elizabeth Warren (D-MA), introduced a measure to people terms gouging by the market's biggest companies.

The Price Gouging Bill of 2025 — introduced connected Thursday by Warren on with Senator Jan Schakowsky (D-IL), Senator Tammy Baldwin (D-WI), and Rep. Chris Deluzio (D-PA) — would marque terms gouging amerciable and springiness the Federal Trade Commission and authorities attorneys wide the powerfulness to litigate alleged abuses of marketplace power.

The projected authorities comes conscionable days aft the June user terms scale showed a resurgence of inflation and arsenic the tariffs toll continues to grow.

Warren says that successful the past, large corporations person taken vantage of marketplace shocks, hiding down factors similar ostentation and proviso concatenation disruptions to rise prices excessively, but this clip the culprit is President Trump's planetary commercialized war.

"Donald Trump's reckless tariff policies are giving companies screen to compression families and rise prices much than necessary. My measure is an accidental for Congress to basal up for families by cracking down connected terms gouging and warring backmost against firm abuse," Warren said successful a statement.

The text of the bill, arsenic seen by CNBC, lists "abrupt commercialized policies" and "exceptional marketplace shock" arsenic factors to beryllium considered successful investigation of terms increases.

A mentation of the measure introduced past year, The Price Gouging Prevention Act of 2024, did not specify commercialized policies. That legislation, sponsored by Warren on with erstwhile Senator Bob Casey (D-PA) was introduced successful February 2024, but failed to pass. Casey mislaid his Senate spot successful the 2024 predetermination to Republican David McCormick.

The terms gouging measure would necessitate companies with implicit $100 cardinal successful gross to publically study successful Securities and Exchange Commission filings connected immoderate changes successful pricing that transcend the mean terms successful the past 120 days earlier the reporting period, and supply details connected merchandise costs and margins. Businesses with little than $100 cardinal successful gross would beryllium protected from terms gouging litigation if they amusement morganatic outgo increases.

The measure would allocate an further $1 cardinal successful backing to the Federal Trade Commission to enforce the terms gouging law.

"The biggest corporations successful our state jack up the outgo of mundane household items, instrumentality successful grounds profits, and springiness their executives immense bonuses – each connected the backs of hard-working Wisconsin families," said Senator Baldwin successful a statement. "Donald Trump claimed helium would little prices – truthful far, helium has done conscionable the other and is adjacent opening the doorway to much terms gouging. ... Our measure volition yet ace down connected firm greed and assistance halt those large companies astatine the apical of the nutrient concatenation from sticking families with exorbitant costs," she stated.

In second-quarter net calls, companies from Costco to Best Buy and Newell Brands cited tariffs arsenic a crushed for price increases.

Deluzio said terms increases are a effect of "out-of-control" firm power. "Prices are inactive excessively high, and ostentation is inactive pounding folks," Deluzio said successful a statement. "Especially now, we request to rein successful monopolists and different immense corporations with the powerfulness to price-gouge the American people," helium added.

The AFL-CIO and United Steelworkers some voiced enactment for the measure and told CNBC that the measure is agelong overdue.

But terms gouging argumentation has been criticized connected some the close and near successful caller history. During Kamala Harris's tally for the presidency, Obama economical advisor Jason Furman told the New York Times that a program to prohibition market store "price gouging" was not dependable economics. "This is not sensible policy, and I deliberation the biggest anticipation is that it ends up being a batch of rhetoric and nary reality," helium told the Times. "There's nary upside here, and determination is immoderate downside."

During a heated CNBC interrogation successful August 2024 astir the aforesaid Harris plan, Warren said 3 twelve states, including Florida and Texas, already person terms gouging laws and person utilized them effectively, often focused connected earthy catastrophe scenarios and acute shortages of goods and services. "Pricing gouging laws are not terms controls. Price gouging laws are determination to accidental that sometimes markets spell disconnected the rails and erstwhile they bash we request immoderate ways to get them backmost connected the rails. We request immoderate curbs connected that behavior," Warren said during a "Squawk Box" interview.

The contented has been a long-time absorption for Warren, who, on with Casey, sent a missive to Kroger CEO Rodney McMullen successful August 2024 questioning the grocer's rollout of physics support labels, arguing the exertion could marque it easier to summation prices of high-demand items.

In abstracted terms gouging accusation past November, Warren, on with Rep. Adam Schiff (D-Calif.), sent a missive to the Federal Trade Commission and the Department of Agriculture, calling connected the agencies to analyse Albertsons and its subsidiaries Safeway and Vons for mislabeling items sold by weight, including produce, nutrient and baked goods and unlawfully charging customers prices higher than their lowest advertised oregon posted price.

A month prior, Safeway, Albertsons, and Von paid astir $4 cardinal to resoluteness allegations of terms gouging and mendacious value advertizing successful California.

Co-sponsors of the caller measure see Senators Richard Blumenthal (D-Conn.), John Fetterman (D-Pa.), Andy Kim (D-N.J.), Ed Markey (D-Mass.), Jeff Merkley (D-Ore.), Bernie Sanders (I-Vt.), Elissa Slotkin (D-Mich.), and Sheldon Whitehouse (D-R.I.). In the House, sponsors see Representatives Angie Craig (D-Minn.), Maggie Goodlander (D-N.H.), Hank Johnson (D-Ga.), Ro Khanna (D-Calif.), Eleanor Holmes Norton (D-D.C.), Jerry Nadler (D-NY), Mary Gay Scanlon (D-Pa.), Rashida Tlaib (D-Mich.), and Paul Tonko (D-N.).